IDEAS home Printed from https://ideas.repec.org/a/eee/enepol/v95y2016icp113-125.html
   My bibliography  Save this article

Effects of demand side management on Chinese household electricity consumption: Empirical findings from Chinese household survey

Author

Listed:
  • Khanna, Nina Zheng
  • Guo, Jin
  • Zheng, Xinye

Abstract

China’s residential electricity demand has grown rapidly over the last three decades and given the expected continued growth, demand side management (DSM) can play an important role in reducing electricity demand. By using micro-level data collected from 1450 households in 27 provinces in the first-ever China Residential Energy Consumption Survey in 2012, this study estimates the effects of three DSM measures empirically: tiered household electricity pricing, China Energy Label program, and information feedback mechanisms. We find these measures have contributed to moderating residential electricity demand growth but additional policy reform and tools are needed to increase their effectiveness and impact. Residential electricity demand is found to be price- and income- inelastic and tiered pricing alone may not be as effective in electricity conservation. The statistically significant relationship between China Energy Label efficient refrigerators - but not televisions - and lowered residential electricity consumption reflect mixed program effectiveness. Lastly, of the information feedback currently available through electricity bills, payment frequency and meters, only meter reader is estimated to be statistically significant. Important policy implications and recommendations for improving each of these three DSM measures to expand their impact on reducing residential electricity consumption are identified.

Suggested Citation

  • Khanna, Nina Zheng & Guo, Jin & Zheng, Xinye, 2016. "Effects of demand side management on Chinese household electricity consumption: Empirical findings from Chinese household survey," Energy Policy, Elsevier, vol. 95(C), pages 113-125.
    • Handle: RePEc:eee:enepol:v:95:y:2016:i:c:p:113-125
    DOI: 10.1016/j.enpol.2016.04.049
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301421516302269
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.enpol.2016.04.049?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Shiu, Alice & Lam, Pun-Lee, 2004. "Electricity consumption and economic growth in China," Energy Policy, Elsevier, vol. 32(1), pages 47-54, January.
    2. Sun, Chuanwang & Ouyang, Xiaoling, 2016. "Price and expenditure elasticities of residential energy demand during urbanization: An empirical analysis based on the household-level survey data in China," Energy Policy, Elsevier, vol. 88(C), pages 56-63.
    3. He, Y.X. & Yang, L.F. & He, H.Y. & Luo, T. & Wang, Y.J., 2011. "Electricity demand price elasticity in China based on computable general equilibrium model analysis," Energy, Elsevier, vol. 36(2), pages 1115-1123.
    4. Sun, Chuanwang & Lin, Boqiang, 2013. "Reforming residential electricity tariff in China: Block tariffs pricing approach," Energy Policy, Elsevier, vol. 60(C), pages 741-752.
    5. Sun, Chuanwang, 2015. "An empirical case study about the reform of tiered pricing for household electricity in China," Applied Energy, Elsevier, vol. 160(C), pages 383-389.
    6. Catherine Wolfram & Orie Shelef & Paul Gertler, 2012. "How Will Energy Demand Develop in the Developing World?," Journal of Economic Perspectives, American Economic Association, vol. 26(1), pages 119-138, Winter.
    7. Alberini, Anna & Filippini, Massimo, 2011. "Response of residential electricity demand to price: The effect of measurement error," Energy Economics, Elsevier, vol. 33(5), pages 889-895, September.
    8. Labandeira, Xavier & Labeaga, José M. & López-Otero, Xiral, 2012. "Estimation of elasticity price of electricity with incomplete information," Energy Economics, Elsevier, vol. 34(3), pages 627-633.
    9. Jasper M. Dalhuisen & Raymond J. G. M. Florax & JHenri L. F. de Groot & Peter Nijkamp, 2003. "Price and Income Elasticities of Residential Water Demand: A Meta-Analysis," Land Economics, University of Wisconsin Press, vol. 79(2), pages 292-308.
    10. Mizobuchi, Kenichi & Takeuchi, Kenji, 2013. "The influences of financial and non-financial factors on energy-saving behaviour: A field experiment in Japan," Energy Policy, Elsevier, vol. 63(C), pages 775-787.
    11. Hung, Ming-Feng & Huang, Tai-Hsin, 2015. "Dynamic demand for residential electricity in Taiwan under seasonality and increasing-block pricing," Energy Economics, Elsevier, vol. 48(C), pages 168-177.
    12. Lin, Boqiang & Liu, Xia, 2013. "Electricity tariff reform and rebound effect of residential electricity consumption in China," Energy, Elsevier, vol. 59(C), pages 240-247.
    13. R. Bruce Billings, 1982. "Specification of Block Rate Price Variables in Demand Models," Land Economics, University of Wisconsin Press, vol. 58(3), pages 386-394.
    14. Severin Borenstein, 2012. "The Redistributional Impact of Nonlinear Electricity Pricing," American Economic Journal: Economic Policy, American Economic Association, vol. 4(3), pages 56-90, August.
    15. Faruqui, Ahmad & George, Stephen S., 2006. "Pushing the Envelope on Rate Design," The Electricity Journal, Elsevier, vol. 19(2), pages 33-42, March.
    16. Gans, Will & Alberini, Anna & Longo, Alberto, 2013. "Smart meter devices and the effect of feedback on residential electricity consumption: Evidence from a natural experiment in Northern Ireland," Energy Economics, Elsevier, vol. 36(C), pages 729-743.
    17. Carroll, James & Lyons, Seán & Denny, Eleanor, 2014. "Reducing household electricity demand through smart metering: The role of improved information about energy saving," Energy Economics, Elsevier, vol. 45(C), pages 234-243.
    18. Zheng, Xinye & Wei, Chu & Qin, Ping & Guo, Jin & Yu, Yihua & Song, Feng & Chen, Zhanming, 2014. "Characteristics of residential energy consumption in China: Findings from a household survey," Energy Policy, Elsevier, vol. 75(C), pages 126-135.
    19. Du, Gang & Lin, Wei & Sun, Chuanwang & Zhang, Dingzhong, 2015. "Residential electricity consumption after the reform of tiered pricing for household electricity in China," Applied Energy, Elsevier, vol. 157(C), pages 276-283.
    20. Filippini, Massimo & Pachauri, Shonali, 2004. "Elasticities of electricity demand in urban Indian households," Energy Policy, Elsevier, vol. 32(3), pages 429-436, February.
    21. Katrina Jessoe & David Rapson, 2014. "Knowledge Is (Less) Power: Experimental Evidence from Residential Energy Use," American Economic Review, American Economic Association, vol. 104(4), pages 1417-1438, April.
    22. Shin, Jeong-Shik, 1985. "Perception of Price When Price Information Is Costly: Evidence from Residential Electricity Demand," The Review of Economics and Statistics, MIT Press, vol. 67(4), pages 591-598, November.
    23. Bar-Shira, Ziv & Finkelshtain, Israel & Simhon, Avi, 2005. "Regulating Irrigation Via Block-Rate Pricing: An Econometric Analysis," Discussion Papers 14982, Hebrew University of Jerusalem, Department of Agricultural Economics and Management.
    24. O'Neill, Brian C. & Ren, Xiaolin & Jiang, Leiwen & Dalton, Michael, 2012. "The effect of urbanization on energy use in India and China in the iPETS model," Energy Economics, Elsevier, vol. 34(S3), pages 339-345.
    25. Zeng, Lei & Yu, Yang & Li, Jiayang, 2014. "China’s Promoting Energy-Efficient Products for the Benefit of the People Program in 2012: Results and analysis of the consumer impact study," Applied Energy, Elsevier, vol. 133(C), pages 22-32.
    26. Yuan, Jiahai & Zhao, Changhong & Yu, Shunkun & Hu, Zhaoguang, 2007. "Electricity consumption and economic growth in China: Cointegration and co-feature analysis," Energy Economics, Elsevier, vol. 29(6), pages 1179-1191, November.
    27. Davoudpour, Hamid & Ahadi, Mohammad Sadegh, 2006. "The potential for greenhouse gases mitigation in household sector of Iran: cases of price reform/efficiency improvement and scenario for 2000-2010," Energy Policy, Elsevier, vol. 34(1), pages 40-49, January.
    28. Khanna, Nina Zheng & Zhou, Nan & Fridley, David & Fino-Chen, Cecilia, 2013. "Evaluation of China's local enforcement of energy efficiency standards and labeling programs for appliances and equipment," Energy Policy, Elsevier, vol. 63(C), pages 646-655.
    29. Schleich, Joachim & Klobasa, Marian & Gölz, Sebastian & Brunner, Marc, 2013. "Effects of feedback on residential electricity demand—Findings from a field trial in Austria," Energy Policy, Elsevier, vol. 61(C), pages 1097-1106.
    30. Dianshu, Feng & Sovacool, Benjamin K. & Minh Vu, Khuong, 2010. "The barriers to energy efficiency in China: Assessing household electricity savings and consumer behavior in Liaoning Province," Energy Policy, Elsevier, vol. 38(2), pages 1202-1209, February.
    31. Zhou, Nan & Fridley, David & McNeil, Michael & Zheng, Nina & Letschert, Virginie & Ke, Jing & Saheb, Yamina, 2011. "Analysis of potential energy saving and CO2 emission reduction of home appliances and commercial equipments in China," Energy Policy, Elsevier, vol. 39(8), pages 4541-4550, August.
    32. Kihm, Steven, 2009. "When Revenue Decoupling Will Work ... And When It Won't," The Electricity Journal, Elsevier, vol. 22(8), pages 19-28, October.
    33. Wiel, Stephen & McMahon, James E., 2003. "Governments should implement energy-efficiency standards and labels--cautiously," Energy Policy, Elsevier, vol. 31(13), pages 1403-1415, October.
    34. Hargreaves, Tom & Nye, Michael & Burgess, Jacquelin, 2013. "Keeping energy visible? Exploring how householders interact with feedback from smart energy monitors in the longer term," Energy Policy, Elsevier, vol. 52(C), pages 126-134.
    35. Peter C. Reiss & Matthew W. White, 2005. "Household Electricity Demand, Revisited," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 72(3), pages 853-883.
    36. Koichiro Ito, 2014. "Do Consumers Respond to Marginal or Average Price? Evidence from Nonlinear Electricity Pricing," American Economic Review, American Economic Association, vol. 104(2), pages 537-563, February.
    37. Lin, Boqiang & Jiang, Zhujun, 2012. "Designation and influence of household increasing block electricity tariffs in China," Energy Policy, Elsevier, vol. 42(C), pages 164-173.
    38. Kempton, Willett & Layne, Linda L., 1994. "The consumer's energy analysis environment," Energy Policy, Elsevier, vol. 22(10), pages 857-866, October.
    39. Zhou, Shaojie & Teng, Fei, 2013. "Estimation of urban residential electricity demand in China using household survey data," Energy Policy, Elsevier, vol. 61(C), pages 394-402.
    40. Blázquez, Leticia & Boogen, Nina & Filippini, Massimo, 2013. "Residential electricity demand in Spain: New empirical evidence using aggregate data," Energy Economics, Elsevier, vol. 36(C), pages 648-657.
    41. Krishnamurthy, Chandra Kiran B. & Kriström, Bengt, 2015. "A cross-country analysis of residential electricity demand in 11 OECD-countries," Resource and Energy Economics, Elsevier, vol. 39(C), pages 68-88.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Du, Limin & Guo, Jin & Wei, Chu, 2017. "Impact of information feedback on residential electricity demand in China," Resources, Conservation & Recycling, Elsevier, vol. 125(C), pages 324-334.
    2. Jia, Jun-Jun & Guo, Jin & Wei, Chu, 2021. "Elasticities of residential electricity demand in China under increasing-block pricing constraint: New estimation using household survey data," Energy Policy, Elsevier, vol. 156(C).
    3. Li, Mingquan & Shan, Rui & Hernandez, Mauricio & Mallampalli, Varun & Patiño-Echeverri, Dalia, 2019. "Effects of population, urbanization, household size, and income on electric appliance adoption in the Chinese residential sector towards 2050," Applied Energy, Elsevier, vol. 236(C), pages 293-306.
    4. Liu, Chang & Lin, Boqiang, 2020. "Is increasing-block electricity pricing effectively carried out in China? A case study in Shanghai and Shenzhen," Energy Policy, Elsevier, vol. 138(C).
    5. Lin, Boqiang & Chen, Xing, 2018. "Is the implementation of the Increasing Block Electricity Prices policy really effective?--- Evidence based on the analysis of synthetic control method," Energy, Elsevier, vol. 163(C), pages 734-750.
    6. Yang, Changhui & Meng, Chen & Zhou, Kaile, 2018. "Residential electricity pricing in China: The context of price-based demand response," Renewable and Sustainable Energy Reviews, Elsevier, vol. 81(P2), pages 2870-2878.
    7. Zihan Zhang & Enping Li & Guowei Zhang, 2023. "How Efficient China’s Tiered Pricing Is for Household Electricity: Evidence from Survey Data," Sustainability, MDPI, vol. 15(2), pages 1-17, January.
    8. Javier Bueno & Desiderio Romero-Jordán & Pablo del Río, 2020. "Analysing the Drivers of Electricity Demand in Spain after the Economic Crisis," Energies, MDPI, vol. 13(20), pages 1-18, October.
    9. Lin, Boqiang & Wang, Yao, 2020. "Analyzing the elasticity and subsidy to reform the residential electricity tariffs in China," International Review of Economics & Finance, Elsevier, vol. 67(C), pages 189-206.
    10. Zhang, Zibin & Cai, Wenxin & Feng, Xiangzhao, 2017. "How do urban households in China respond to increasing block pricing in electricity? Evidence from a fuzzy regression discontinuity approach," Energy Policy, Elsevier, vol. 105(C), pages 161-172.
    11. Hung, Ming-Feng & Chie, Bin-Tzong, 2017. "The long-run performance of increasing-block pricing in Taiwan's residential electricity sector," Energy Policy, Elsevier, vol. 109(C), pages 782-793.
    12. Lin, Boqiang & Zhu, Penghu, 2021. "Has increasing block pricing policy been perceived in China? Evidence from residential electricity use," Energy Economics, Elsevier, vol. 94(C).
    13. Saha, Debalina & Bhattacharya, Rabindra N., 2018. "An analysis of elasticity of electricity demand in West Bengal, India: Some policy lessons learnt," Energy Policy, Elsevier, vol. 114(C), pages 591-597.
    14. Wu, Ya & Zhang, Li, 2017. "Evaluation of energy saving effects of tiered electricity pricing and investigation of the energy saving willingness of residents," Energy Policy, Elsevier, vol. 109(C), pages 208-217.
    15. Ayertey, Winfred & Sharifi, Ayyoob & Yoshida, Yuichiro, 2024. "The impact of increase in block pricing on electricity demand responsiveness: Evidence from Ghana," Energy, Elsevier, vol. 288(C).
    16. Boogen, Nina & Datta, Souvik & Filippini, Massimo, 2021. "Estimating residential electricity demand: New empirical evidence," Energy Policy, Elsevier, vol. 158(C).
    17. Gong, Chengzhu & Yu, Shiwei & Zhu, Kejun & Hailu, Atakelty, 2016. "Evaluating the influence of increasing block tariffs in residential gas sector using agent-based computational economics," Energy Policy, Elsevier, vol. 92(C), pages 334-347.
    18. Li, Yao & Fan, Jin & Zhao, Dingtao & Wu, Yanrui & Li, Jun, 2016. "Tiered gasoline pricing: A personal carbon trading perspective," Energy Policy, Elsevier, vol. 89(C), pages 194-201.
    19. Yu, Yihua & Guo, Jin, 2016. "Identifying electricity-saving potential in rural China: Empirical evidence from a household survey," Energy Policy, Elsevier, vol. 94(C), pages 1-9.
    20. Wang, Chen & Zhou, Kaile & Yang, Shanlin, 2017. "A review of residential tiered electricity pricing in China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 79(C), pages 533-543.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:enepol:v:95:y:2016:i:c:p:113-125. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/enpol .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.